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Silver Wheaton Company Presentation

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I was listening to a presentation on the European Gold Forum 2008 from Silver Wheaton where they claim they are 150% leveraged to the silver price. They say for every 10% increase in silver their cash flow increases 15%.

 

Not sure exactly how a 15% cashflow increase relates exactly to the share price but I wanted to check this out by examining the SLW-SLV ratio

 

slwslvratio02072008kx8.png

 

Seems to be bouncing off that trendline nicely, so I've put in an order to top my holding - lets see if it fills

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OK, SLW is my best ever investment. I offloaded a 1/3 a while ago for nearly double what I paid, but thanks to C$ action and the price of SLW they are up another 50%. Time to offload some more or stay with them and let them run? Views?

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I offloaded half at 100% increase, now the other half is at 200%. Think I am going to carry on holding and even might increase.

 

 

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If i remembr right Silver Wheaton bascially came up with a very good business plan of buying long term rights to X amount of Silver at X price (usually sub 5$) per Oz back when prices were very low.

 

They don't have the same level of risk as any individual miners who have wider concerns about region/geology/fuel costs etc but due to their business model are very susceptable to fluctuations based purely on silver pricing.

 

I thought it was a great idea when i first heard then doing a presentation in last years Financial Sense miners special program but didn't invest at the time. I think these guys have a big upside because of the way their base costs are capped through long term contracts with suppliers.

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